How to Choose the Right Customer Acquisition Channel and the Impact of Highlights on Medium

How to Choose the Right Customer Acquisition Channel and the Impact of Highlights on Medium

In the world of startups, there are two key priorities when it comes to customer acquisition: learning and growth. Learning is crucial in the early stages of a startup, especially when trying to find product-market fit or expanding into new target audiences. On the other hand, growth becomes the focus once a certain base amount of customers has been established and the goal is to move the needle in a meaningful way.

When it comes to choosing the right customer acquisition channel, there are several factors to consider. Volume is one of the key considerations. Startups need to prove that they can generate a significant number of customers to have a meaningful impact on their business. Cost is another important factor. Optimizing the cost per acquisition (CPA) allows startups to get more out of their budget.

However, the most important factor to optimize for is learning. By focusing on what will help the startup learn the most, it becomes easier to decide which initiatives to invest time and resources in. This approach allows startups to gather valuable data and insights that can inform future decision-making.

To choose the right customer acquisition channel, it's essential to understand the constraints and limitations of the startup. These constraints can include factors such as time, targeting, and available resources. By identifying these constraints, startups can narrow down their options and choose the channels that align best with their goals and capabilities.

One approach to choosing the right customer acquisition channel is to create a channel matrix. This matrix lists out all potential channels in the header column and defines key attributes in the header row. These attributes can include upfront costs, minimum spends, pay-as-you-go options, expected CPCs or CPMs, channel volume, and scalability in terms of time and resources. By filling in the values of the channel matrix, startups can evaluate and compare different channels based on their suitability and potential impact.

Once the channel matrix is filled out, it's time to choose one or two channels as hypotheses. Startups should focus on channels that align with their constraints and optimize for learning. By selecting channels that offer high targeting, low input/output time, and sufficient scale, startups can gather the data and insights they need to make informed decisions.

Now, let's shift our focus to the impact of Highlights on Medium. Highlights is a feature that allows readers to engage with Medium's content by highlighting passages, phrases, or quotes that resonate with them. This feature has been highly praised by readers and writers alike, turning Medium into one of the leading online publishing platforms.

Medium recognized the importance of depth and engagement in the publishing industry. Vanity metrics like views or clicks don't necessarily indicate the true value of a piece of content. Instead, Medium created a community where people interact with each other and become smarter based on those interactions. Highlights, inspired by the Notes feature and Recommend Notes, offers readers a way to engage with content in a more social and meaningful way.

For writers, feedback is invaluable. Highlights provide authors with direct feedback from their audience, allowing them to understand which parts of their posts are most engaging and worthwhile. This feedback helps writers improve their content and attracts more readers, leading to higher readership and financial rewards for quality posts.

The introduction of Text Shots, a tool for sharing Highlights as screengrabs on Twitter, further enhanced the engagement and discussion on Medium. By prioritizing depth of discussion, Medium created a more immersive and valuable experience for its users. This increase in engagement and retention ultimately contributes to sustainable growth for the platform.

In conclusion, choosing the right customer acquisition channel and prioritizing depth of engagement are crucial for the success of startups and online publishing platforms alike. To choose the right channel, startups should prioritize learning, identify constraints, and create a channel matrix to evaluate and compare options. Meanwhile, online platforms should focus on creating features that enhance engagement and provide value to their users. By understanding the unique needs and preferences of their audience, startups and platforms can drive growth and create a thriving community.

Actionable Advice:

1. Prioritize learning when choosing customer acquisition channels. Focus on channels that will provide valuable data and insights to inform decision-making.
2. Understand your constraints and limitations. Identify factors such as time, targeting, and available resources to narrow down your options and choose channels that align with your goals.
3. Create engaging features that enhance user experience. Prioritize depth of discussion and feedback to increase engagement and retention.

Sources:

• "5 Steps To Choose Your Customer Acquisition Channel — Brian Balfour"
• "How Highlights on Medium changed publishing forever | productboard"